GIC, Temasek reject claim they pushed MSCI on Indonesia downgrade
What's new: The denials came after Indonesia's market slid sharply following MSCI's review of a possible shift to standalone status.
Singapore state investors GIC and Temasek rejected claims that they pressured MSCI to consider cutting Indonesia's stock market classification. The allegations came from former Indonesian trade minister Muhammad Lutfi, who accused the firms of trying to spur a sell-off so Indonesian shares could be bought more cheaply. GIC said its investment decisions are based on company and asset fundamentals, not index labels. Temasek's Fock Wai Hoong said neither the firm nor its staff had contacted MSCI to influence any exchange decision in the region. MSCI last week opened a consultation on moving its Indonesia indexes from emerging-market to standalone status, citing concerns that included suspected coordinated trading.